Economic Diversification

In a fast-paced world driven by technological advances, the global landscape is being reshaped by the rapid rise of Artificial Intelligence (AI), a technology that is playing a vital role in bringing in major economic shifts, unleashing a new era of GDP growth. One of the most active regions concerning AI integration is the Middle East, a region not only observing or keeping up, rather revolutionizing this integration as governments across the region harness the power of AI to reshape their policies, implement national strategies, attract smarter investments while powerfully reconstructing their futures. Such adaptation has already borne fruit, as different economies in the region became more agile and dynamic, systems evolved to operate more efficiently and smarter, resulting in providing better services to their respective populations.   Despite the rapid progress and fast growth of AI in the Middle East, the region still faces a set of challenges, including the lack of properly trained individuals and the constant need of innovative solutions and new ways to narrow this gap. On the other hand, the region lacks legislative framework to regulate the use of AI in a fair and ethical manner. While a growing need for sustainable infrastructure development underlines the fact that more work is still required, overcoming these obstacles and challenges will lead to unlock the region’s full potential, overcome competition and become a major player in the AI world globally.

With GDP of more than $1 trillion USD, Saudi Arabia is the largest economy in the Middle East. A country well-known for its enormous oil reserves has been making significant steps to alter its position in the global economy. These reforms are part of a bigger plan to diversify the country’s economy and lessen its dependency on oil revenues. Consequently, the evolving economic landscape of Saudi Arabia will be explored, with a focus on its diversification efforts, investment strategies, and the obstacles it must overcome to emerge as a global leading economy.

A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves. Over the last decade, sovereign wealth funds (SWFs) have sharply grown; this is particularly the case of the Gulf Cooperation Council (GCC) SWFs who have invested worldwide with a special focus on developed countries, and whose accumulated assets have dramatically increased in the last ten years due to several factors. Therefore, it is necessary to study the characteristics of GCC SWFs, as well as to assess the factors behind their growing role and their future trends.